In order to update an employees pay run settings, click on Pay Run Defaults under the Pay Run Settings heading from within the employee's file.
Within Pay Run Defaults, the user may configure for the employee:
- Timesheets - you can select to use or not use timesheets
- Pay Rate - the employee's pay rate per Hour, per Annum or per Day. The 'Apply for a specified date' button allows you to schedule a pay rate for an employee that will take effect at a future date. Detailed instructions on this can be found here.
- Standard Work Week - leaving the 'Basic' option selected you must specify the employee's normal work hours per week e.g. 40 hours, but selecting the 'Advanced' option and you’ll be able to enter the employee’s standard working hours for each day of the week. For more details, refer here.
- Normally Works - if you have selected the 'Basic' option (from above), this section will then allow you to enter the employee's work hours - on a per week and per day basis. Please note that if an employee is casual, you can enter an estimate of the hours they usually work. What you enter here will affect applications and payment of leave taken by the employee. Specifically, the system will take these values to convert any day and weekly based leave into hours when processing in the pay run. For example, if you have entered that an employee works 8 hours per day and 40 hours per week and the employee applies for 2 days of leave, the system will calculate this leave as 16 hours in the pay run. Refer to this article for further information on how leave is converted to hours in the pay run.
- Use Standard Business Daily Hours - by default, this checkbox is ticked and indicates that the business' standard daily hour (as configured via Payroll Settings > Details > Standard Hours Per Day field), is being applied to the employee. If the employee's hours vary from the standard business hours, you can manually override the value by unticking the checkbox and entering the correct value.
- Pay these earnings by default in a pay run - Choosing to select this box will auto populate the pay run using the hours entered in 'hours per week' and 'hours per day' paying the rate specified in the employees pay rates page.
- Job Title - the employee's job title.
- Leave Allowance Template - optional field. There is an 'Irregular Employment' leave allowance template available as a default. If you have ticked the 'Irregular Employment' checkbox for an employee you must also apply the 'Irregular Employment' leave allowance template. This will ensure that the employee does not accrue any annual holidays entitlement (of 4 weeks) and will automatically apply the 'Pay As You Go 8%' per pay run for the employee. Otherwise, if no leave allowance template is selected the employee will accrue all leave entitlements by default.
- Primary Pay Category - the employee's current primary pay category.
- Default Location - the employee's current default location.
- Pay Schedule - the employee's current pay schedule e.g. Weekly, Fortnightly or Monthly.
- Pay Slip Notifications - the employee's pay slip notification of None, SMS, Email or Manual.
- Roster Notification - the employee's rostering notifications of SMS and or Email.
- ESCT Rate - the ESCT rate based on the employee's pay rate and working hours per week. The ESCT rate is set to 0% by default and not editable if the KiwiSaver enrollment option is set to Ineligible.
- Irregular Employment - Irregular employment refers to a situation where a casual employee has no guaranteed hours of work, no regular pattern of work and no ongoing expectation of employment. The employer doesn't have to offer work to the employee and the employee doesn't have to accept work if offered. The employee works as and when it suits both them and the employer. Ticking this checkbox indicates the employee is not entitled to accrued annual holidays due to the nature of their work hours and as such will automatically activate the 8% annual holidays pay as you earn pay category. This option will not be available for selection if the employment type has been set at Independent Contractor (only available if feature has been enabled, refer to Advanced Settings for more information)
If you make any amendments, remember to click on the 'Save' button to save the details.
Note: any changes made to the employee's pay run defaults details are effective from the day after the period end date of the most recent pay run the employee has been included in (or the employee's start date if there's no finalised pay run).
Below is an example of an employee's pay run defaults page.
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